A shift in client needs from enterprise applications to human resources solutions has been key to explaining SAP's 18% revenue growth in Latin America during 1Q11, Felix Feddersen, senior VP of the company's large enterprise division for the region, told BNamericas.
According to Feddersen, companies in Latin America are changing their investment focus, from software and IT solutions to more HR-based applications. "In this context, we've seen an increase in the demand for talent management, recruitment and other HR applications in the region. This shows that companies are prioritizing solutions that facilitate business growth by investing in their employees."
SAP experienced growth in all sectors in Latin America, with power - oil and gas - jumping 118%, utilities up 52% and banking up 36%.
During the quarter, Mexico showed the strongest performance in the region, with software revenues surging 64%. In terms of software and software-related services, Peru saw a 44% revenue spurt, while Brazil and Colombia each reported 13% growth, followed by Argentina and Chile with 18% and 7%, respectively.
Currently, SAP has 11,050 clients in Latin America, half of which originate from Mexico or Brazil.